India investigates on Swiss accounts over tax crimes

India has approached Switzerland for banking details of at least ten persons and entities suspected to have kept untaxed money in Swiss banks. These include two listed textile companies, while others are associated with an art curator and his carpet export business.
There are also some companies incorporated in tax havens like Panama and British Virgin Islands. Most of the companies and individuals are associated with a carpet export business and an art curator with operations across several countries.

Switzerland's tax department issued notices to them last week to reply within 30 days to appeal the decision about providing 'administrative assistance' in information requests from India.

Under its local rules, Switzerland provides a final chance to the concerned persons and entities before sharing the information about suspected cases of tax crimes with any foreign jurisdiction. These notices are made public through gazette notifications if they are not reachable directly by the concerned banks or the tax department.

Earlier, the notices were issued by Switzerland's Federal Tax Administration (FTA) asking some of them to designate a representative to exercise their "right to be heard" before the assistance is extended to India.

India has been seeking "administrative assistance", including access to bank account details of the persons and the companies suspected to have stashed undisclosed funds in banks in Switzerland, after furnishing some evidence to justify the suspicion.

Switzerland and India signed an Automatic Exchange of Information (AEOI) accord in november 2016. From September 2019, India will start getting information automatically about accounts held by Indians in Swiss banks.